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4/16, 12:29 PM (Source: TeleTrader.com)
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Kashkari believes Fed will reach inflation target soon

Minneapolis Federal Reserve President Neel Kashkari said in an interview with the Wall Street Journal published on Monday that he believes the Fed will soon achieve its 2% inflation rate in the "near future." According to the central banker, reaching the inflation objective would be a "good thing" and once it is achieved, the Fed "should try to get to neutral in a reasonable period of time."

Kashkari added American people are feeling "optimistic" about the Republican tax reform and their own economic outlook. However, he pointed out the optimism may fade as a result of trade tensions between the US and China. The Fed official claimed the trade situation could have three different outcomes, out of which a trade war would be "the worst possible," while the best result would be "just a bunch of bluster and posturing on both sides" that would not have a significant effect on the economy. "A middle outcome is it’s mostly bluster, but it’s enough bluster that it scares people and it scares investors," Kashkari stated.

Breaking the News / NP